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1. DR.AMBEDKAR ARTS AND COMMERCE COLLEGE YERWADA, PUNE-06 M.COM (II) 2019 CREDIT PATTERN NAME OF THE SUB: Foreign Exchange NAME OF THE STUDENTS:- Mahesh Uttam Wabale ROLL NUMBER :- { } NAME OF THE TOPIC:- FOREIGN EXCHANGE MARKET NAME OF THE GUIDE:- PROF . Varat D.D Sir

2. FOREIGN EXCHANGE MARKET MEANING The foreign exchange market (also known as forex, FX, or the currencies market) is an over-the-counter (OTC) global marketplace that determines the exchange rate for currencies around the world.

3. FEATURES FOREIGN EXCHANGE MARKET The foreign exchange market is a global platform where different countries' currencies are exchanged. It's also known as forex or currency market. Its key features include high transaction volume, global reach, 24/7 operation, and diverse instruments and participants.

4. PARTICIPANTS OF FOREIGN EXCHANGE MARKET Commercial banks. Hedge funds. Real money. Retail traders. Sovereign wealth funds. Prime brokers. Retail brokers. Proprietary trading firms.

5. SPOT MARKET FEATURES Rading Can Take Place Via An Exchange Or Over-the-counter (OTC). The Exchange Represents A Market Where Buyers And Sellers Are Brought Together. Meanwhile, Over-the-counter Only Involves Direct Contact Between The Buyer And The Seller, Without Going Through The Exchange. Item Delivery And The Transfer Takes Place As Soon As The Transaction Is Complete. It May Take Several Working Days. Spot Price Represents The Actual Price When The Transaction Is Completed, Not The Future Price. It Applies Immediately And Not Tomorrow. Spot Price Changes Every Day, Depending On The Supply And Demand In The Market. In Contrast, In The Futures Contract, Prices Do Not Change Until The Delivery Of Goods And Transfers Of Funds Is Complete. Requirements May Be Standard For Transactions On Exchanges. But, That May Not Be Standard In Over-the-counter Transactions, Depending On The Buyer And Seller’s Agreement.

6. CURRENCY OPTIONS What Is a Currency Option? A currency option (also known as a forex option) is  a contract that gives the buyer the right, but not the obligation, to buy or sell a certain currency at a specified exchange rate on or before a specified date . For this right, a premium is paid to the seller.

7. RISK IN FOREIGN EXCHANGE MARKET Foreign exchange risk is the chance that a company will lose money on international trade because of currency fluctuations. Also known as currency risk, FX risk and exchange rate risk, it describes the possibility that an investment's value may decrease due to changes in the relative value of the involved currencies.

8. Sincerely Thanks to :- Prof .Varat D.D Sir